28/9/2011
BHP has said that its growth ambitions are bigger than its main rival Rio Tinto. As both companies are doing battle in the current Australian mining boom, they are aiming to sell more iron ore to growing countries such as India and China, who are currently leading steel production growth.
This would mean that BHP would now have a consistent higher share price, possibly coming close or catching up to Rio Tinto as they attempt to grow their business at Pilbara by growing it to obtain 240 million tonnes annually, and an overall target of 350 million tonnes a year.
This growth would mean more money into the Australian economy because of the amount of exports BHP are producing to China and India, and this would mean more economic stability for Australia's economy as it prepares for another recession due to the European debt crisis, and also because mining accounts for over 5% of Australia's Gross Domestic Product.
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